Components requirements

There is another pressure on the new aspirants, their foreign touch aggravating their troubles. Ashok Jainani, Head (Research), KSL India critically divulges, “Of all the information available, Bajaj wouldn’t be able to compete with Nano, for lack of expertise and components requirements. Moreover, payment of royalties to foreign collaborators puts Bajaj and Hero Group on the backfoot; something that Tata need not bother about.” To add to the chaos, Bajaj will also face pressure from auto-component suppliers. Recently, Minda and Sona which are scheduled to supply parts for Nano production lately cried hoarse over costing pressures and asked Tata to increase the price of Nano, to give them better margins.

If the two are successful, India will have its first two companies that have a presence in both two wheelers and four wheelers – a lethal combination. A complete metamorphosis into four wheels-making however is not to be expected as Jainani forecasts, “At the moment, I don’t see them getting completely into four wheelers as there will always be a new set of target audience for the two wheeler industry.” Surely, for the moment, Bajaj and Hero Group are not bidding goodbye to Street Hawk; Knight Rider is just a part of their on-road strategy.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus